A CPA has been asked to audit a municipal authority. The CPA owns some of the authority's

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A CPA has been asked to audit a municipal authority. The CPA owns some of the authority's outstanding bonds. The amount is immaterial. Would the CPA's independence be impaired with respect to an audit of the authority?

a. Yes, because the CPA has a loan to a client.

b. No, because the amount of bonds held by the CPA is immaterial.

c. No, because the municipal authority is a not- for-profit enterprise.

d. No, because the CPA has no managerial position with the authority.

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Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

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Question Posted: May 07, 2024 02:00 AM

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A CPA has been asked to audit a municipal authority. The CPA owns some of the authority's

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Auditing An Assertions Approach

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